| Roth IRAs are individual saving schemes meant | | | | you choose to withdraw from. The order to be |
| for people with taxable income who meet | | | | followed is: first of all you have to |
| certain eligibility criteria. They are | | | | withdraw from the non-taxable annual |
| different from the traditional IRA, in that | | | | contributions made to a Roth IRA, followed by |
| the contributions made to them are subject to | | | | Withdrawals from conversion contributions on |
| tax deductions, but the earnings themselves | | | | a first-in, first-out basis, and finally, the |
| are tax-free. This means that the Withdrawals | | | | Withdrawals can be made from the earnings. |
| are not subject to taxation. Also, you can | | | | |
| have more than one Roth IRA account, but | | | | Also, there is a penalty for early |
| there is a limit to the amount of | | | | Withdrawals. For example, if for some reason |
| contributions that you can make in them. Your | | | | you draw money before reaching fifty-nine and |
| total contributions in all the accounts | | | | half years of age, you will be subject to a |
| cannot exceed $4,000, or 100% of your | | | | ten percent penalty on the amount of |
| adjusted gross income, whichever is less. | | | | Withdrawal. There are, however, exceptions |
| | | | to this rule, including if the Withdrawals |
| There are some rules and regulations involved | | | | have to be made because the individual has |
| with the Withdrawals of the earnings accrued | | | | suffered some sort of disability. Also, if a |
| from these savings. First and foremost, if | | | | person is buying or rebuilding his home for |
| you have multiple Roth IRA accounts, you can | | | | the first time, he or she is exempted from |
| withdraw money from any of the accounts. Yet | | | | the penalty. There is no penalty involved if |
| the Withdrawals themselves have to be made in | | | | the Withdrawal results because of the owner's |
| a certain order, regardless of the account | | | | death. |